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MTN Uganda shareholders voted to spin off the company’s mobile money business into a standalone fintech, which will reshape Uganda’s digital payments landscape and unlock billions in value for Africa’s largest telecom group.
- •At this week’s extraordinary general meeting, investors approved the plan to transfer MTN Uganda’s high-growth MoMo unit into a new entity, MTN New FinCo.
- •MTN Group Fintech Holdings B.V. will own 76% of the new fintech company while a trust for existing MTN Uganda shareholders will hold the remaining 24%.
- •With more than 14 million active users and more than USh 97 trillion ($25 billion) transacted in 2024, MTN MoMo leads Uganda’s digital payments market.
By separating the business, MTN expects to unlock higher market valuations and open the door to fintech partnerships and fundraising, following the playbook of regional rivals such as Safaricom’s M-Pesa and Airtel Money.
The move directly responds to Uganda’s National Payment Systems Act 2020, which requires mobile money to operate independently from telecom services.
MTN, which is listed on the Uganda Securities Exchange (USE), has emphasized that the reorganization is internal and will not affect the company’s listing. MoMo customers will also not see any changes in daily service.
The telco still needs approval from several Ugandan regulators, including the Bank of Uganda, the Capital Markets Authority, and the Uganda Revenue Authority. To address shareholder concerns, MTN will offer a 14-day exit window for retail investors after receiving regulatory clearance. The company also requested confirmation from tax authorities to prevent new tax obligations for investors.
Shareholders raised concerns about transparency and the trust’s structure. MTN management promised regular disclosures and stressed that the trust will protect minority investors from dilution.
The telco plans to list the new fintech company on the USE within three to five years, after it secures regulatory approvals.